US President Donald Trump has answer to why stock markets are crashing

AFP
Published Feb 8, 2018, 9:31 am IST
Updated Feb 8, 2018, 9:34 am IST
'In the old days, when good news was reported, Stock Market would go up but today, when good news is reported, market goes down,' he said.
US President Donald Trump commented on recent stock market volatility for the first time on Wednesday, suggesting a wild sell-off may be due to good news about the economy. (Photo: File)
 US President Donald Trump commented on recent stock market volatility for the first time on Wednesday, suggesting a wild sell-off may be due to good news about the economy. (Photo: File)

Washington: US President Donald Trump commented on recent stock market volatility for the first time on Wednesday, suggesting a wild sell-off may be due to good news about the economy.

“In the ‘old days,’ when good news was reported, the Stock Market would go up,” Trump tweeted. “Today, when good news is reported, the Stock Market goes down.”

 

The real estate tycoon suggested that was a "big mistake, and we have so much good (great) news about the economy!"

Tuesday’s sell-off and partial recovery on Wall Street have been fueled by expectations that rising wages and inflation will spur the Federal Reserve to raise interest rates.

Also Read: Wall Street bloodbath: Dow ends nearly 1,200 pts down, tumbles 1,500 pts in trading

That could crimp corporations used to years of cheap borrowing.

Also Read: Global market panic fades as Wall Street stems bleeding

Throughout his presidency, Trump has sought to portray record rises on Wall Street as indicative of the broader economy, rather than a reflection corporate America.

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